Hey guys, im moving to a new trading firm by the name of Cy. They trade off Genesis's Laser which I am familiar with. I know it isnt a HUGE well known company, so I ws hoping to run a bit of a background check to make sure I dont wake up one day to see my account along with the firm are now gone. I recall a rule which allows me to ask for a Balance Sheet of the company. Is this true? What else can I ask for/look for to make sure the company will continue doing business without any concerns of it going under. Much Thanks in advance.
Yes, be sure to get a copy of their balance sheet..and be sure you understand it. You can go to www.nasdr.com to check for violations...or the their "SRO" (Self Regulatory Organization), for exchange members (as we are) for any further info. I suggest checking the principals...see if they've been "bouncing around" from firm to firm, or starting and stopping various entities, beware. Check to see that they have a solid relationship with the Clearing Firm (Goldman in our case). Self Clearing firms can be ok, as long as the balance sheet shows that they don't need the traders money to satisfy their "Net Capital Requirements" (you want a strong "bank"). Check training and how their traders do overall. Good Luck with your search..... Don